Wendy's 2009 Annual Report Download - page 125

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The impairment in the asset management segment primarily relates to anticipated losses on the sale of an
internally developed financial model and the impairment of the value of certain asset management contracts
due to their early termination.
During 2009, we disposed of one of our Company-owned aircraft and recorded additional impairment in
2009 based on the sale price. At December 28, 2008, we classified the aircraft as held-for-sale and recorded an
impairment charge to reflect its estimated fair value as a result of an appraisal related to its potential sale.
All of these impairment losses represented the excess of the carrying amount over the fair value of the
affected assets and are included in “Impairment of other long-lived assets.” The fair values of impaired assets
discussed above for the Wendy’s and Arby’s restaurants segments and the asset management segment are
generally estimated based on the present values of the associated cash flows and on market value with respect to
land.
(16) Investment (Expense) Income, Net
2009 2008 2007
Interest income ............................................... $ 249 $1,285 $ 9,100
Distributions, including dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 205 2,818 1,784
Realized gains, net............................................ 2,948 8,460 49,829
Unrealized (losses) gains, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (1,128) 1,578
Fee on early withdrawal of Equities Account. . . . . . . . . . . . . . . . . . . . . (5,500) — —
Other........................................................ (910) (1,997) (181)
$(3,008) $ 9,438 $62,110
(17) Other Than Temporary Losses on Investments
2009 2008 2007
Decline in fair value of DFR common stock . . . . . . . . . . . . . . . . . . . . . $ — $ 68,086 $ —
Allowance for doubtful accounts for DFR Notes . . . . . . . . . . . . . . . . . — 21,227 —
Decline in fair value of available-for-sale securities primarily held
in the Equities Account ..................................... 801 13,109 1,101
Decline in fair value of cost method investments . . . . . . . . . . . . . . . . . 3,115 10,319 20
Decline in fair value of CDO preferred stock investments . . . . . . . . . — — 8,788
$3,916 $112,741 $9,909
(18) Discontinued Operations
Prior to 2007, we sold the stock of the companies comprising our former premium beverage and soft
drink concentrate business segments and the stock or the principal assets of the companies comprising
SEPSCO’s former utility and municipal services and refrigeration business segments. The Company has
accounted for all of these operations as discontinued operations.
The income from discontinued operations consisted of the following:
2009 2008 2007
Income (loss) from discontinued operations before income taxes . . . . . . $ 671 $ 242 $ (247)
Reversals of tax reserves due to tax settlements . . . . . . . . . . . . . . . . . . . . . 1,143 1,701 1,144
(Provision for) benefit from income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . (268) 274 98
Income from discontinued operations, net of income taxes . . . . . . . . . . . $1,546 $2,217 $ 995
118
Wendy’s/Arby’s Group, Inc. and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(In Thousands Except Per Share Amounts)